Trends In Mutual Fund Investing
June 2006

Washington, DC, July 28, 2006 - The combined assets of the nation's mutual funds increased by $10.30 billion, or 0.1 percent, to $9.329 trillion in June, according to the Investment Company Institute's official survey of the mutual fund industry. In the survey, mutual fund companies report actual assets, sales, and redemptions to ICI.

Total Net Assets of Mutual Funds
(billions of dollars)

	June 06	May 06	% chg	Dec 05
Stock Funds	5,248.9	5,263.9R	-0.3	4,939.8
Hybrid Funds	585.5	586.1R	-0.1	567.3
Taxable Bond Funds	1,041.5	1,040.6R	0.1	1,018.5
Municipal Bond Funds	344.4	345.7R	-0.4	338.8
Taxable Money Market Funds	1,768.1	1,741.1	1.6	1,706.5
Tax-Free Money Market Funds	340.1	340.8R	-0.2	334.0
Total	9,328.5	9,318.2R	0.1	8,904.8

R=Revised data

Highlights: Long-term funds - stock, bond, and hybrid funds - had a net outflow of $9.18 billion in June, vs. a net inflow of $456 million in May.

Stock funds posted an outflow of $8.40 billion in June, compared with an inflow of $3.16 billion in May. The last month that stock funds experienced an outflow was $10.88 billion in February 2003. Among stock funds, world equity funds (US funds that invest primarily overseas) posted an inflow of $945 million in June, vs. an inflow of $9.02 billion in May. Funds that invest primarily in the US had an outflow of $9.34 billion in June, vs. an outflow of $5.86 billion in May. For the first six months of the year, world equity funds had inflows of $89.64 billion and domestic funds had inflows of $24.15 billion.

Hybrid funds posted an outflow of $438 million in June, compared with an outflow of $155 million in May.

Bond funds had an outflow of $345 million in June, compared with an outflow of $2.55 billion in May. Taxable bond funds had an outflow of $668 million in June, vs. an outflow of $2.90 billion in May. Municipal bond funds had an inflow of $323 million in June, compared with an inflow of $347 million in May.

Money market funds had an inflow of $20.06 billion in June, compared with an inflow of $50.83 billion in May. Funds offered primarily to institutions had an inflow of $5.99 billion. Funds offered primarily to individuals had an inflow of $14.07 billion.

Net New Cash Flow of Long-term Funds
(millions of dollars)

	June 2006	May 2006	YTD 2006	YTD 2005
New Sales	91,836	120,666R	672,825	512,700R
Redemptions	-94,580	-112,332R	-551,172	-430,287R
Exchanges In	13,623	21,376R	116,109	85,511R
Exchanges Out	-19,276	-26,549R	-123,971	-93,803R
Net New Cash Flow	-8,398	3,161R	113,791	74,122R

Hybrid Mutual Funds

New Sales	7,249	8,862R	52,346	59,152R
Redemptions	-7,510	-8,592R	-48,443	-40,491R
Exchanges In	1,259	1,270R	7,922	8,108
Exchanges Out	-1,435	-1,695	-10,820	-6,724
Net New Cash Flow	-438	-155R	1,006	20,045R

Taxable Bond Mutual Funds

New Sales	28,909	25,685R	160,235	149,084R
Redemptions	-29,223	-28,432R	-142,956	-135,511R
Exchanges In	3,828	4,410R	22,632	21,262R
Exchanges Out	-4,182	-4,560R	-26,285	-22,066R
Net New Cash Flow	-668	-2,897R	13,625	12,770R

Municipal Bond Mutual Funds

New Sales	5,839	6,235R	37,368	29,334R
Redemptions	-5,520	-5,741R	-30,753	-26,652R
Exchanges In	784	808R	5,285	4,614
Exchanges Out	-780	-955	-5,344	-4,761
Net New Cash Flow	323	347R	6,556	2,534

Net New Cash Flow of Money Market Funds
(millions of dollars)

June 06	May 06	YTD 2006	YTD 2005
20,055	50,834R	36,281	-68,261

Liquid Assets of Stock Mutual Funds
(percent of total net assets)

June 06	May 06	June 05
4.2%	4.2%	4.0%

Annual Redemptions from Stock Funds
(percent of average net assets*)

June 06	May 06	June 05
20.6%	20.2%	19.1%R

*Redemptions over the most recent twelve-month period as a percent of average of total net assets at beginning and ending of period.

Annual Redemptions and Redemption Exchanges from Stock Funds
(percent of average net assets*)

June 06	May 06	June 05
25.2%	24.7%	23.3%

*Redemptions and Redemption Exchanges over the most recent twelve-month period as a percent of average of total net assets at beginning and ending of period.

Number of Mutual Funds in this Report

	June 06	May 06	June 05
Stock Funds	4,623	4,631R	4,525R
Hybrid Funds	505	511	507R
Taxable Bond Funds	1,276	1,279	1,271R
Municipal Bond Funds	731	733	754
Taxable Money Market Funds	582	587	614
Tax-free Money Market Funds	274	275	285
Total	7,991	8,016R	7,956R

R=Revised data